King Introduces Legislation to Prevent ESG Investment Practices

COLUMBUS –State Representative Angie King (R-Celina) recently introduced legislation to the House Financial Institutions Committee that will prevent the practice of environmental, social and governance (ESG) practices by Ohio companies and banking institutions.

The legislation would empower the Treasurer of Ohio to create a list of all businesses that practice ESG economic boycotts and make the list publicly available. The legislation would also prohibit government entities from purchasing holdings or entering contracts with companies that practice ESG standards and would charge the attorney general’s office with upholding and enforcing contract requirements.

“Rather than determining the creditworthiness and value of a business or industry based upon objective measures such as profit, return on investment, consumer demand and other material performance measures, a social credit score is being used to transform society and ‘reset’ the global financial system,” said King.

House Bill 4 will also prohibit insurers from refusing to provide coverage or charge different rates for customers solely based on ESG standards. 

The legislation has not yet been scheduled for additional hearings in the financial institutions committee.